how severance affects your benefits
leaving chevron with severance

COBRA continuation coverage allows eligible employees and their covered dependents to continue to participate in company-sponsored health care plans beyond the time when coverage would normally end, such as when you leave Chevron. In most situations, Chevron does not contribute to (or subsidize) the cost of this coverage and you’re required to pay the full cost, plus a 2% administration fee.

However, if you’re eligible for a qualifying severance program, Chevron may continue to contribute to the cost of medical and mental health and substance use disorder continuation coverage for a set period of time. This is called subsidized COBRA continuation coverage. With subsidized COBRA continuation coverage, you will pay the same monthly premium for your medical COBRA coverage as other similarly enrolled active Chevron employees, plus the 2% administration fee. Please note that the Wellness Credit, if applicable, ends when your employment ends.

As the company goes through Transformation efforts, we recognize that the global pandemic has created unique and extraordinary economic challenges. That’s why Chevron has temporarily extended the subsidy period for medical COBRA continuation coverage. If you are eligible to participate in the 2020 Special SESP Plan, and you’re eligible for and enroll in Chevron COBRA continuation coverage, then Chevron will subsidize your medical and mental health and substance use disorder COBRA coverage for a period of up to 12 months. This is an increase from the 6 month subsidy period typically offered with our severance program.

Please visit the COBRA continuation coverage section to learn more.

In most situations, you’re eligible to receive a pension benefit under the Chevron Retirement Plan if you are vested when your employment ends. Generally, in order to be vested in your benefit, you must have at least five years of Vesting and Eligibility Service. However, if you’re eligible for a qualifying severance program, you will be automatically vested in the Chevron Retirement Plan on the date your employment is terminated, even if you haven’t completed five years of service.

Severance only affects vesting; it doesn't change the standard Chevron Retirement Plan eligibility rules, how your benefit is calculated, or the distribution options available to you. 

Learn more about what happens to your pension when you leave Chevron, including the choices you'll need to make:

• Good to Know: Your pension benefit when you leave Chevron
• How CIP and Salary Affect Pension
• Model your pension on BenefitConnect

Leaving Chevron with severance does not affect your eligibility to participate in Chevron retiree health and welfare coverage. In addition, severance does not affect the company contribution for which you’re eligible. However, keep in mind that leaving Chevron is an important retiree health benefit enrollment milestone. Be sure to start the decision-making and enrollment process prior to leaving, if possible. Start exploring your options here:

• Am I eligible for retiree health and welfare benefits? Login to the BenefitConnect website, go to I need to… on the top navigation, choose Retiree medical eligibility.
• Learn about retiree benefits if you are an employee under age 65 (pre-65).
• Learn about retiree benefits if you are an employee age 65 or over (post-65).
• The Leaving Chevron section provides additional instructions about how to make retiree and other post-employment benefit elections.

Leaving Chevron with severance doesn't affect how your other employee benefit plans and programs will transition when your employment has ended. Learn more about this transition here:

• Good to Know: What happens to other employee benefits when you leave Chevron
• Vacation payout eligibility
• CIP payout eligibility (intranet only)
• Humankind for retirees

If you are an LTIP participant and you terminate prior to January 31 of the next year, following the grant date, 100% of the stock options or stock appreciated rights (SARs), performance shares and standard restricted stock units will be forfeited. All high-level restricted stock units, regardless of when they were granted or the reason for termination, will be forfeited upon termination. Your age and service at termination will impact which portions of your remaining LTIP grants will vest, as well as how long you have to exercise vested stock options and/or stock appreciation rights. Review the LTIP Termination Rules document or view the LTIP at Termination video on the Chevron intranet for more information.

Stock options or SARs expiration dates will be reflected in your Morgan Stanley account, typically within one week following your termination or retirement. Keep these expiration dates in mind, as you will be responsible for exercising your grants before they expire. If your grant is set to expire on a date when the stock market is closed, such as on a holiday in the United States or on a weekend, you will need to exercise before the plan-defined expiration date.

For more information:

• Long-Term Incentive Plan (LTIP) section on the U.S. HR website from the Chevron intranet. 
• You can also contact the Executive Compensation Group at execplans@chevron.com.

Payments from the Deferred Compensation Plan (DCP), ESIP-Restoration Plan (ESIP-RP) and the Retirement Restoration Plan (RRP) will be based on your distribution elections. 

• Your distribution elections can be viewed at Fidelity’s NetBenefits.com.
• If you wish to change your distribution election, you must do so at least 12 months prior to the first scheduled distribution. 
• You are prohibited from accelerating payments and can begin receiving payments no sooner than five years from the previously scheduled payment date. Send an email to execplans@chevron.com for a form to change your election.
• Chevron Incentive Plan (CIP) and Long-Term Incentive Plan (LTIP) deferral elections cannot be amended after your employment ends. If you would like to change or cancel deferral elections, you must do so prior to leaving Chevron.